Stock Return Calculator

Calculate your total stock investment return including capital gains and dividends. See your annualized return rate and compare performance across different holding periods.

Investment Details

$
$
yrs
$

Over the entire holding period

Ready to Calculate

Enter your stock purchase and sale details to calculate total return and annualized performance.

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Pro Tip

Always consider total return (price appreciation + dividends), not just share price changes. Dividends have historically contributed about 40% of the S&P 500 total return.

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Measuring Stock Investment Returns

Accurately measuring stock investment performance requires considering all sources of return, not just the change in share price. Total return combines capital appreciation (or depreciation) with any income received from dividends, providing a complete picture of how your investment actually performed.

Annualized return (CAGR - Compound Annual Growth Rate) is the standard metric for comparing investments across different time periods. It answers the question: what consistent annual return would produce the same total result? This allows you to compare a 3-year and a 10-year investment fairly.

Dividends are a significant component of total return that many investors overlook. Historically, reinvested dividends have contributed roughly 40% of the S&P 500's total return. Ignoring dividends when evaluating performance substantially understates actual results.

When evaluating your returns, compare against relevant benchmarks like the S&P 500 for large-cap stocks, the Russell 2000 for small-caps, or bond indices for fixed income. This context helps determine whether your active investment decisions are adding value above what a simple index fund would provide.

Stock Return Formulas

Total Return & CAGR

Total Return = (End Value - Start Value + Dividends) / Start Value
CAGR = (End / Start)1/years - 1

Where:

End Value = Sale price x number of shares

Start Value = Purchase price x number of shares

Dividends = Total dividends received during holding period

CAGR = Compound Annual Growth Rate (annualized return)

Example

Bought 100 shares at $50, sold at $85 after 5 years, $1,200 dividends:

  • • Total invested: 100 x $50 = $5,000
  • • Sale value: 100 x $85 = $8,500
  • • Capital gains: $8,500 - $5,000 = $3,500 (70%)
  • • Total return: $3,500 + $1,200 = $4,700 (94%)
  • • Annualized: ($9,700 / $5,000)^(1/5) - 1 = 14.2%

Frequently Asked Questions

What is total return?
Total return includes both capital gains (change in share price) and income (dividends). Looking at price change alone understates your actual return. A stock that returns 4% in price appreciation plus 3% in dividends has a total return of approximately 7%.
What is annualized return?
Annualized return (CAGR) is the compound annual growth rate that would produce the same total return over the holding period. It normalizes returns across different time periods for fair comparison. A 60% total return over 5 years is approximately 9.9% annualized.
How are stock gains taxed?
Short-term capital gains (held less than 1 year) are taxed as ordinary income. Long-term gains (held over 1 year) are taxed at preferential rates: 0%, 15%, or 20% depending on income. Qualified dividends receive the same preferential long-term rates.
Does this calculator account for fees?
This calculator shows gross returns before fees. To get net returns, subtract any trading commissions, fund expense ratios, or advisory fees from your total return. Even small fees compound over time and can significantly impact long-term results.
How does my return compare to the market?
The S&P 500 has historically returned approximately 10% annually (7% after inflation). Compare your annualized return to this benchmark. Consistently beating the market average is difficult, which is why many investors prefer low-cost index funds.